(Reuters) -President Donald Trump said on Saturday that it was a “very successful attack” on three nuclear sites in Iran.
“The main nuclear enrichment facilities have been completely in Iran,” Trump said in a televised oval office.
After days of deliberations and before the deadline it imposed for two weeks, Trump’s decision to join the military campaign against Israel against its main rival Iran is a great escalation of the conflict.
Market reaction: With the closure of most markets, the only reaction was in encrypted currencies. The ether decreased more than 5 %, bitcoin decreased 1 %.
Here are comments from some financial analysts:
Mark Spindel, Cio, Potomac River Capital, Washington, DC:
“I think the markets will be concerned at the beginning and I think oil will open up. We have no assessment of the damage and it will take some time. Although he described this as” done “, we are involved. What will happen after that? I think the uncertainty will prove the markets, as is the case with Americans everywhere.
“There is time to trade before opening the markets on Sunday. I am arrangements to speak with a few people tomorrow. We will get an early signal when the dollar opens to trade in New Zealand. This was a bold work, and it is a great variation with comments about negotiating the next two weeks.”
Jimmy Cox, Administrative partner, Harris Financial Group, Richmond, Virginia:
“The oil will certainly enhance in this initial news, but it is likely that it will settle within a few days. With this demonstration of strength and extermination of its nuclear capabilities, they have lost all their influence and are likely to reach the escape button to a peace deal.”
Mark Malik, Chief Investment Officer, Sepert Financial, New York:
“I think it would be very positive for the stock market. I think it was Friday if you asked me, I expected two weeks of fluctuations with markets trying to analyze all information about the information that comes out of the White House, and I was saying it was better to make a decision last week.
“So this will be reassuring, especially since it seems that one situation and not as if (the United States) seeks to long.
Jacques Applein, Chief Investment Investor Cresset Capital, Chicago:
“This adds a new complex layer of risks that we will have to think about and pay attention to … This will definitely an effect on energy prices and perhaps on inflation as well.”
Saul Cavon, Senior Energy Officer, Mst Marquee, Sydney:
“This escalation can add sufficient pressure on Iran to see Iran that will decline and accept a deal that eliminates the conflict and reduces oil prices with it.
“The most likely scenario: This American attack can witness a fire of the conflict to include Iran, which responds by targeting American regional interests that can include Gulf oil infrastructure in places such as Iraq or the passage of the strait through the Strait of Hormuz.
“It relies a lot on how Iran responds in the coming hours and days, but this may put us on the road of about $ 100 of oil if Iran responds because it has previously threatened. The information war that appears to be designed to pick up Iran out of guard has also flared up from the oil markets to some extent.”
Rong Ren Goh, Governor Director, Eastspring Investments, Singapore:
“The American bombing of Iranian nuclear facilities represents a major escalation in the Israeli conflict Iran and provides a new stage of geopolitical risks, as the United States is involved in the region, which is likely to extend tensions in the region.
“For Asian markets, the main weakness lies in its sensitivity to high energy prices. The prolonged struggle raises the risk of display disorders, which can feed on the stresses of inflation and educate growth expectations throughout the region.
“With the probability of a rapid solution now, investors are likely to restore risks across the markets. I expect to see a trip to safety, with the dollar and weakness on a large scale across the origins of Asian risk as the markets evaluate the potential repercussions of continuous geopolitical instability and high oil prices.”
Alex Morris, Chief Investment Officer, F/M Investments, Washington, DC:
Morris expects crude oil to rise to $ 80 or more when trading resumes.
“This is the next station as a reaction to the knee. I think this is the reason for this on Saturday and not Sunday. There is a lot that will happen over the next 24 hours.”
Eric Peres, director of the portfolio, audio income strategies, Larsmonte, New York:
“If there are nuclear repercussions – all stakes are suspended. The system will conclude that it has lost everything and will carry out all kinds of crazy things, such as assigning terrorist attacks on embassies.”
Christopher Hodge, Senior American economist, Natsisis, New York:
“There are a large number of possible repercussions, but it seems as if the strikes were targeted, confidential and discriminatory. If this is the case, and if the capacity of exporting oil in Iran is not penetrated, economic repercussions must be contained.
“Bob will be seen in the short term in oil prices by the Federal Reserve Lower as a lesser factor that increases the costs of inputs and feeds on inflation than it will be a tax on consumers who suppress the demand. I do not expect this factor to be in the account of the decision of the Federal Reserve, unless the high oil prices are maintained.”
(I participated in the reports of Said Azar, Suzan Mcji, Skut Murdoch, and Fidia Ranganathanecukannabon by Peter Henderson and Fidia Ranganathan)
